1.
Average cost per unit | |||
Qty(i) | Rate(ii) | Amount(iii=i*ii) | |
1-Apr | 750 | 5 | 3,750.00 |
4-Apr | 1875 | 5.07 | 9,506.25 |
8-Apr | 1000 | 5.36 | 5,360.00 |
13-Apr | 1500 | 5.56 | 8,340.00 |
21-Apr | 875 | 5.66 | 4,952.50 |
29-Apr | 625 | 5.86 | 3,662.50 |
Total | 6625 | 35,571.25 | |
Average cost= Total Amount/ Total Qty | |||
35571.25/6625 | |||
5.37 |
Inventory Purchased | Goods sold | |||||||
Qty(i) | Rate(ii) | Amount(iii=i*ii) | Qty(i) | Rate(ii) | Amount(iii=i*ii) | |||
1-Apr | 750 | 5 | 3,750.00 | 3-Apr | 625 | 11 | 6875 | |
4-Apr | 1875 | 5.07 | 9,506.25 | 9-Apr | 1750 | 11 | 19250 | |
8-Apr | 1000 | 5.36 | 5,360.00 | 11-Apr | 750 | 12 | 9000 | |
13-Apr | 1500 | 5.56 | 8,340.00 | 23-Apr | 1500 | 12 | 18000 | |
21-Apr | 875 | 5.66 | 4,952.50 | 27-Apr | 1125 | 13 | 14625 | |
29-Apr | 625 | 5.86 | 3,662.50 | 5750 | 67750 | |||
Total | 6625 | 35,571.25 | ||||||
Closing Inventory | Rate | Amount | ||||||
LIFO | 6625-5750=875 | 1-Apr | 750 | 5 | 3,750.00 | |||
875-750=125 | 4-Apr | 125 | 5.07 | 633.75 | ||||
4,383.75 | ||||||||
As per LIFO | 4,383.75 | |||||||
Average | 6625-5750=875 | |||||||
Average cost per unit=5.37 | ||||||||
Closing Inventory=875*5.37=4698.75 | ||||||||
4,698.75 | ||||||||
Inventory Purchased | Goods sold | |||||||
Qty(i) | Rate(ii) | Amount(iii=i*ii) | Qty(i) | Rate(ii) | Amount(iii=i*ii) | |||
1-Apr | 750 | 5 | 3,750.00 | 3-Apr | 625 | 11 | 6875 | |
4-Apr | 1875 | 5.07 | 9,506.25 | 9-Apr | 1750 | 11 | 19250 | |
8-Apr | 1000 | 5.36 | 5,360.00 | 11-Apr | 750 | 12 | 9000 | |
13-Apr | 1500 | 5.56 | 8,340.00 | 23-Apr | 1500 | 12 | 18000 | |
21-Apr | 875 | 5.66 | 4,952.50 | 27-Apr | 1125 | 13 | 14625 | |
29-Apr | 625 | 5.86 | 3,662.50 | 5750 | 67750 | |||
Total | 6625 | 35,571.25 | ||||||
Closing Inventory | Rate | Amount | ||||||
LIFO | 6625-5750=875 | 29-Apr | 750 | 5 | 3,750.00 | |||
875-750=125 | 21-Apr | 125 | 5.07 | 633.75 | ||||
4,383.75 | ||||||||
As per FIFO | 4,383.75 | |||||||
Closing Inventory | Rate | Amount | ||||||
FIFO | 6625-5750=875 | 29-Apr | 625 | 5.86 | 3,662.50 | |||
875-625=250 | 21-Apr | 250 | 5.66 | 1,415.00 | ||||
5,077.50 | ||||||||
As per LIFO | 5,077.50 | |||||||
COGS= Opening Inventory+Purchase- Closing Inventory | |
As per FIFO | |
Opening Inventory | 3,750.00 |
Closing Inventory | 5,077.50 |
Purchases | 31,821.25 |
3750+31821.25-5077.50=30,493.75 | |
30,493.75 |
In an inflationary period FIFO method will show the highest net income since the value of closing inventory is highest (5,077.50) in this method, leading to increase in net profit.
*Exercise 8-11 Culver Company's record of transactions for the month of April was as follows. Purchases April 1...
Exercise 8-11 Culver Company's record of transactions for the month of April was as follows. Purchases April 1 (balance on hand) 672 1,680 8 896 0 1,344 784 $6.00 6.08 6.41 6.51 6.61 Sales April 3 560 9 1,568 @ 11 672 23 1,344 2 7 1,008 @ $11.00 11.00 12.00 12.00 13.00 560 6. 79 5 ,152 5,936 Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit. (Round answer to 2 decimal places,...
Exercise 8-11 Kingbird Company’s record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) 1,500 @ $6.00 April 3 1,250 @ $10.00 4 3,750 @ 6.08 9 3,500 @ 10.00 8 2,000 @ 6.40 11 1,500 @ 11.00 13 3,000 @ 6.50 23 3,000 @ 11.00 21 1,750 @ 6.60 27 2,250 @ 12.00 29 1,250 @ 6.79 11,500 13,250 Assuming that periodic inventory records are kept in units only,, calculate the...
Vaughn Company's record of transactions for the month of April was as follows. Purchases April 1 (balance on hand) 1,140 @ $6.00 2,850 @ 6.08 1,520 @ 6.40 2,280 @ 6.50 1,330 @ 6.60 950 @ 6.79 10,070 Sales April 3 950 @ $10.00 9 2,660 @ 10.00 11 1,140 @ 11.00 23 2,280 @ 11.00 27 1,710 @ 12.00 8,740 Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit. (Round answer to 2...
Exercise 8-11 Sheffield Company’s record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) 1,260 @ $6.00 April 3 1,050 @ $10.00 4 3,150 @ 6.08 9 2,940 @ 10.00 8 1,680 @ 6.40 11 1,260 @ 11.00 13 2,520 @ 6.50 23 2,520 @ 11.00 21 1,470 @ 6.60 27 1,890 @ 12.00 29 1,050 @ 6.79 9,660 11,130 Assuming that periodic inventory records are kept in units only, calculate the...
Exercise 8-11 Swifty Company’s record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) 420 @ $6.00 April 3 350 @ $10.00 4 1,050 @ 6.08 9 980 @ 10.00 8 560 @ 6.40 11 420 @ 11.00 13 840 @ 6.50 23 840 @ 11.00 21 490 @ 6.60 27 630 @ 12.00 29 350 @ 6.79 3,220 3,710 Assuming that periodic inventory records are kept in units only, calculate the...
Exercise 8-11 Sunland Company’s record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) 1,020 @ $6.00 April 3 850 @ $10.00 4 2,550 @ 6.08 9 2,380 @ 10.00 8 1,360 @ 6.40 11 1,020 @ 11.00 13 2,040 @ 6.50 23 2,040 @ 11.00 21 1,190 @ 6.60 27 1,530 @ 12.00 29 850 @ 6.79 7,820 9,010 Assuming that periodic inventory records are kept in units only, calculate the...
Swifty Company’s record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) 420 @ $6.00 April 3 350 @ $10.00 4 1,050 @ 6.08 9 980 @ 10.00 8 560 @ 6.40 11 420 @ 11.00 13 840 @ 6.50 23 840 @ 11.00 21 490 @ 6.60 27 630 @ 12.00 29 350 @ 6.79 3,220 3,710 Assuming that periodic inventory records are kept in units only, calculate the average-cost per...
Exercise 8-11 Tamarisk Company's record of transactions for the month of April was as follows. Purchases April 1 (balance on hand) 1,200 @ $6.00 3,000 @ 6.08 1,600 @ 6.40 2,400 @ 6.50 1,400 @ 6.60 1,000 @ 6.79 10,600 Sales April 3 1,000 @ $10.00 9 2,800 @ 10.00 11 1,200 @ 11.00 23 2,400 @ 11.00 27 1,800 @ 12.00 9,200 Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit. (Round answert...
Blossom Company's record of transactions for the month of April was as follows. Sales 00 M Purchases April 1 (balance on hand) 1,620 @ $6.00 4,050 @ 6.08 2,160 @ 6.40 3,240 @ 6.50 1,890 @ 6.60 1,350 @ 6.79 14,310 April 3 9 11 23 27 1,350 @ $10.00 3,780 @ 10.00 1,620 @ 11.00 3,240 @ 11.00 2,430 @ 12.00 12,420 o Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit. (Round...
Nash Company's record of transactions for the month of April was as follows. Purchases Sales 360 S6.00 April 3 300@ $10.00 9 840 10.00 11 360 11.00 23 720 11.00 April 1 (balance on hand 900 6.08 4 8 480e 6.40 720 650 420 6.60 13 27 540@ 12.00 21 300 6.79 2.760 29 3.180 Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit. (Round answer to 2 decimal places, es. 2.76 Average-cost per...